Bitfinex, according to CoinMarketCap, is one of the largest cryptocurrency exchanges, has unveiled a “distributed banking solution” which they expect will be an acceptable solution to much-discussed banking vows. This new system will allow KYC verified users to initiate fiat deposits of USD, GBP, JPY and EUR, which for a week had been put on hold.
Users now can initiate fiat deposits through their exchange accounts by specifying the exact amount and currency they plan to deposit. The exchange sends them a notification in 48 hours on approving the transfer and providing their bank details specific to the individual transaction. The exchange hopes that this system will make operations more durable. They said,
“We believe this system to be significantly more durable in the face of sustained attacks by our competition and their supporters. Ongoing campaigns against us will only result in our company becoming stronger and better.”
Bitfinex who shares a management team with Tether did not reveal the banks with whom they were conducting business. They also issued a message that warned its users to not share bank details with anyone outside of their financial institutions, as that could hamper the entire digital token ecosystem.
“This banking information is being provided to you for purposes of contributing good faith funding to your account on Bitfinex….This banking information is commercially sensitive and confidential. You should be very careful with this information. You are asked to keep this information to yourself and do not share it except with your financial institution. Divulging this information could damage not just yourself and Bitfinex, but the entire digital token ecosystem. Accordingly, you are cautioned that there may be serious negative effects associated with this information becoming public.”
Ever since Wells Fargo cut off their relations with Bitfinex, they have struggled for a long while to find a stable banking partner and rumours say that they have bounced around some banks as a result. However, they found a solution in Puerto Rican Noble Bank, until they filed for bankruptcy. They went next to HSBC, though that relationship was severed soon.
Bitfinex’s market share has climbed monumentally post tether’s loss of the USD peg, and over the last 24 hours, they have gained nearly 544 million USD in volume and now is second only to Binance. By processing 13.5 billion USD worth of trades, they are now the fourth most popular crypto exchange.